Bridge Loans or hard money are asset based loans collateralized against real estate. The real estate securing the loan provides the recourse in the event of default (if it's a non-recourse loan) or the borrowers is the guarantors for the debt if the loan is a recourse loan. The loan to value (LTV) or loan to cost (LTC) for bridge loans are lower, interest rates are higher and loan duration considerably shorter than permanent loans creating more available equity if the lender has to foreclose on the asset and liquidate it. These loans provide a viable means to quick funding, short term financing, cash flow restricted projects financing, value play deals, etc. Possible bridge loan terms available by lenders are: -

Purchase, refinance and construction

Multifamily, Retail, Industrial, Mixed Use, etc

50 - 70% LTV/LTC

Loan Term: 1 - 3 years

Amortization: Interest Only

Recourse

Non-recourse

and more...